Contrasting Concentrix (NASDAQ:CNXC) & Booz Allen Hamilton (NYSE:BAH)

Concentrix (NASDAQ:CNXC – Get Free Report) and Booz Allen Hamilton (NYSE:BAH – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Concentrix and Booz Allen Hamilton, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Concentrix 1 2 3 0 2.33
Booz Allen Hamilton 3 7 5 0 2.13

Concentrix currently has a consensus target price of $33.50, indicating a potential upside of 10.49%. Booz Allen Hamilton has a consensus target price of $89.29, indicating a potential upside of 5.05%. Given Concentrix’s stronger consensus rating and higher possible upside, analysts plainly believe Concentrix is more favorable than Booz Allen Hamilton.

Earnings and Valuation

This table compares Concentrix and Booz Allen Hamilton”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Concentrix $9.97 billion 0.19 -$1.28 billion ($38.90) -0.78
Booz Allen Hamilton $11.22 billion 0.90 $851.00 million $6.44 13.20

Booz Allen Hamilton has higher revenue and earnings than Concentrix. Concentrix is trading at a lower price-to-earnings ratio than Booz Allen Hamilton, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Concentrix and Booz Allen Hamilton’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Concentrix -23.99% 25.00% 6.07%
Booz Allen Hamilton 7.14% 75.00% 11.41%

Institutional & Insider Ownership

90.3% of Concentrix shares are held by institutional investors. Comparatively, 91.8% of Booz Allen Hamilton shares are held by institutional investors. 0.9% of Concentrix shares are held by company insiders. Comparatively, 1.1% of Booz Allen Hamilton shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Concentrix pays an annual dividend of $1.48 per share and has a dividend yield of 4.9%. Booz Allen Hamilton pays an annual dividend of $2.36 per share and has a dividend yield of 2.8%. Concentrix pays out -3.8% of its earnings in the form of a dividend. Booz Allen Hamilton pays out 36.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Concentrix has increased its dividend for 3 consecutive years and Booz Allen Hamilton has increased its dividend for 14 consecutive years. Concentrix is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Concentrix has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Booz Allen Hamilton has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Summary

Booz Allen Hamilton beats Concentrix on 12 of the 17 factors compared between the two stocks.

About Concentrix

(Get Free Report)

Concentrix Corporation engages in the provision of technology-infused customer experience (CX) solutions worldwide. The company provides CX process optimization, technology innovation, front- and back-office automation, analytics, and business transformation services, across various channels of communication, such as voice, chat, email, social media, asynchronous messaging, and custom applications. It also offers customer lifecycle management; customer experience/user experience strategy and design; analytics and actionable insights; digital transformation services that design and engineer CX solutions to enable efficient customer self-service and build customer loyalty; customer engagement solutions and services that address the entirety of the customer lifecycle; AI technology that can intelligently act on customer intent to improve customer experience with non-human engagement; voice of the customer and analytics solutions to gather and analyze customer feedback to foster loyalty to, and growth with, clients; analytics and consulting solutions that synthesize data and provide professional insight to improve clients’ customer experience strategies; vertical business process outsourcing (BPO) services; and back office BPO services that support clients in non-customer facing areas. The company’s clients include technology and consumer electronics, retail, travel and e-commerce, communications and media, banking, financial services and insurance, healthcare, and others, as well as global IPOs, social brands, and banks. Concentrix Corporation was founded in 2004 and is based in Newark, California.

About Booz Allen Hamilton

(Get Free Report)

Booz Allen Hamilton Holding Corporation provides management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber services to governments, corporations, and not-for-profit organizations in the United States and internationally. It focuses on artificial intelligence services comprising of machine learning, predictive modeling, automation and decision analytics, and quantum computing. The company offers artificial intelligence, machine learning, and computer network related operations. In addition, it provides data science, engineering, visualization, and analysis related capabilities. Further, the company engages in user experience, user interface, graphic and web design, design thinking, sketching, and digital product design capabilities. Additionally, it architects and engineers help accelerate, scale, secure, and transform mission and business outcomes using the technologies and partner offering; offers software engineering in agile practices, DevSecOps, automation and Cloud, and Low/No Code Platform engineering; systems and digital engineering; and tech strategy and product management. Booz Allen Hamilton Holding Corporation was founded in 1914 and is headquartered in McLean, Virginia.

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